What is Forex trading?
Here is a quick guide to currency trading. Find out how you can begin trading currencies over the internet via a web-based broker, and how to create profit (make money) on your trades.
It is easy to start with foreign exchange trading. You will need:
- Capital (i.e. money in any currency).
- A trading account with an online broker.
- Basic understanding to trade currencies.
How much money you need to engage in currency speculation?
We assume that you have some money already. You do not have to be rich to start with currency speculation. If you NOK 1000, you can open a full-fledged currency account with even the best currency brokers online. Some brokers let it begin with even smaller amount also. It is obviously easier to earn a lot if you invest larger amounts.
How can I learn how to make money forex trading?
It takes time to become a good Forex trader, but there are also alternative solutions. Via social investment network eToro has the ability to see and copying other traders, requiring no special skills. Even the best traders can be wrong, so there is of course no guarantee that you will make money by copying the experts, but it does at least a little easier to get started with forex trading.
All online brokers listed on this site has resources and guides that show you how to create profits in the currency market. We recommend that you read some of these guides. It may still be useful to get some experience with trade as early as possible. Practical experience makes it easier to understand the theoretical.
Recommended forex brokers
Which online broker should I choose for currency trading?
We have examined several dozen online brokers that offer trading currencies online. Of these, we picked out the ones we liked best:
- easyMarkets is a leading provider of forex trading (trading in currency and commodity derivatives). As the name indicates, this service is designed to make forex easier. Of course it is not automatic to profit even if the service is easy to use, but most traders still appreciate services that are simple and practical in use and easyMarkets is unrivaled of this. A good online broker for beginners as well as for those with experience.
Other good online brokers worth mentioning:
- AVA Trade is a recognized forex broker offering in CFD trading. Has fixed low spreads meaning reasonable trade regardless trading volume.
eToro is a social investment network where you can see and copying other traders in the market. They have 2.5 million users and is the largest player in the online social trading. Worth a try.
You 've already tried forex trading
Most of us have already tried currency trading. If you have traveled to another country, you have probably already conducted a trade in the currency market.
This guide is not about exchanging currencies for the same purpose as when you are traveling in foreign countries, but how to make money on currency speculation. It's fun there, just wait to see! The goal is not in itself to switch from one currency to another, but to make money on changes in exchange rates.
Exchange marketis the world's largest financial market. Even the largest stock markets in the world are small in comparison. If Oslo Børs is the moon, the sun currency market
Traded daily values in the FX market is about 20 trillion every day. In comparison the NYSE is only 440 billion dollars, and london stock exchange only 42 billion dollars
As you can see from the figures above are not even the largest equity markets in the world near the currency market daily trading volume.
Although all stock markets in the world combined is less than the foreign exchange market.
The easiest way to learn forex trading
One can read many books on currency trading, without being able to gain profit in the currency market. But it is also possible to make money in the currency market even without reading a single finansbok.
Many good traders started to "play " in the currency market. They used trivial or used fictitious play money at first, so they are not opaque to the day they really understood what they were doing.
A good way to get an idea of what forex trading is all about, is simply to create a demo account with an online broker offering forex.
Even if you know little or nothing about currency trading, it is to try out a free and risk free demo account is a great way to start. Why?
Because you're going to ask yourself the question: What is this? How do you do that? Why is this so? Which currency should I buy now to make the most money?
Questions come by themselves, and the answers are commonly out of the way.
A demo account is a risk- free tool to play around on the currency market. Think about it, both human and animal toys when they are children. It is a strategy by nature, the best way to learn is through play.